Related News
Avoid being taken for a ride by unregulated bargain car rentals
Print Edition
MOTORISTS are seizing the chance to turn their cars into money-making machines by renting out their vehicles on peer-to-peer Internet platforms like PP Zuche.
But these unregulated sites pose risks to unwary consumers, such as a local car owner who was identified only by her surname Zhao. She told the Shanghai East Radio Station that she agreed to rent her new Roewe to a man on September 1 for four days.
When the car was due to be returned, he told Zhao that a friend had borrowed the vehicle, and he was vague on when it might be returned. That’s the last she saw of the man or her car.
The Shanghai transport management authority said it has received complaints from people who have been conned on online car rental sites. The problem is that many of the companies operating online sites aren’t officially registered with the authority, and people using the services don’t bother to check.
“All vehicles available for rental must be registered with us,” said Lu Gaosheng, a spokesman at the Shanghai Vehicle and Transport Management Office. “They also should have a license plate with the letter ‘Y’ to identify the car as a rental.”
PP Zuche, a company registered in Beijing and also operating in Singapore, is not among the 36 rental companies with operating licenses from the Shanghai Transport Commission. Lu said the company hasn’t applied for registration.
“People need to check before they rent their cars out on private sites, or they take great risk and we have no way of helping them,” he added.
Zhao said she contacted PP Zuche about her missing car. The company said it had no trace of it either, according to the Shanghai East Radio Station report. It told the radio station that Zhao would be compensated for her loss if the car remained missing for more than 90 days.
Zhao also reported the loss to police but was told there was nothing law enforcement could do since she had voluntarily signed a rental agreement.
A customer service member of the company, speaking on condition of anonymity, told Shanghai Daily that PP Zuche requires all renters to buy insurance when they register on the site. A deposit is also required from those renting a car.
The staffer declined to discuss the amount of money involved or what level of compensation is offered if a car is lost during the rental period.
Opportunity for mutually beneficial arrangement
PP Zuche first began operations in Singapore under the name iCarsClub.
Within the first 10 months of operation, it accumulated 1,000 cars for lease and more than 7,000 members interested in renting, according to the Chinese-language Global Entrepreneur magazine.
Most users of the site were between the ages of 20 and 40 and came from lower to middle income brackets.
For some, renting cars not in use is welcome cash in the pocket.
Zhou Shifen, who lives in Qibao, Minhang District, told Shanghai Daily in June that he rents out his Peugeot 307 at a rate of 75 yuan (US$12.2) a day, or 10 yuan an hour. At such a low price, the vehicle is booked seven days a week.
“I bought the car three years ago with less than 30,000 kilometers on the odometer,” he said. “I keep it in good maintenance. I am making money but not tons of it because my rental rate is so cheap.”
Those who rent cars said they are attracted by the low prices.
Nicolas Wan, 32, told Shanghai Daily that when he needed a car while his was being repaired, his friends recommended PP Zuche. He rented a Volkswagen Passat for 180 yuan a day, with a deposit of 1,500 yuan.
“It would have cost me around 650 yuan a day if I had gone to a traditional car rental company,” said Wan.
Placing the emphasis on low prices and simplicity
PP Zuche claims on its website that its service beats traditional car rental companies on price and simplicity.
It reduces the paperwork that car owners and renters normally undergo when they deal with a physical car rental company.
Motorists can rent cars via websites or applications installed on a smartphone.
PP Zuche receives 30 percent of the fee, with the owners getting the remaining 70 percent.
Most of the cars listed on the PP Zuche platform are lower-cost family cars charging daily rental fees from 70 yuan (US$11.4) to 300 yuan.
Renters are required to upload photos of their ID cards and driver’s licenses to the website. The information is verified within three working hours, the website claims. A deposit based on the car model and condition is required to cover costs of accidents or traffic violations before a contract is signed.
PP Zuche also requires renters to hold a valid driver’s license for at least six months, have fewer than nine penalty points for traffic violations and have no record of drunk driving in the past three years.
Car owners are also required to pay 500 yuan for a vehicle-mounted GPS device.
In Zhao’s case, the device was no longer tracking and probably had been removed.
Legal hazards of industry operating in gray area
Despite all the advertised safeguards, hazards lurk.
Shanghai-based lawyer Wang Weihua told Shanghai Daily that private cars aren’t covered under the road transport business licensing system. This means the car rental platforms are operating in a gray area.
Another PP Zuche user and car renter Zhao Xinyuan told Shanghai Daily that she rented a BMW 3 at 400 yuan a day in June.
When she returned the car, the owner pointed to a scratch and accused Zhao of causing it.
“It was obviously an old scratch, but I finally agreed to pay the repair cost,” she said ruefully. “The owner chose an expensive repair garage.”
A car owner has 24 hours to check and see whether the returned car is in good condition.
After 24 hours, the deposit is returned to the driver, so any disputes after that will be difficult to resolve.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
